The Nigerian National Petroleum Corporation (NNPC) in the last seven months spent over N816billion in subsidising the cost of Petroleum Motor Spirit (PMS) for Nigerians, a report has shown.
Despite this, within the period, the country lost another N182billion to product losses, which is about 22.3percent of the total cost spent on subsidy.
According to the industry’s report obtained from the Corporation’s website, the NNPC started recording what it described in its books as “value shortfall” from February.
As a result, the Corporation’s statutory remittance to FAAC had at a point, dwindled within the period.
A breakdown of the figures showed that within the period under review, the shortfall steadily rose from N25.3billion in January to N164.3billion recorded in May.
But in June, the total shortfall according to the document dropped to N143.3billion and again rose by about N30billion, that is, N173billion in July.
However, from the accrued shortfall within the period, the NNPC said it was only able to deduct a total of N715billion from its net sales proceeds to cover the difference between the landing cost and the ex-coastal price of PMS.
It said the differential outstanding would be deducted from its sales proceed in subsequent months.
The NNPC stated that this became imperative in order to make funds available for Joint Venture JV cost recovery, so as to sustain the existing production level.
Meanwhile, the NNPC had previously stressed that the shortfalls had affected the revenues accruable to the Federation even as it awaits the outcome of engagements between the Federal Government and other relevant stakeholders.
Earlier in July 2021, the former NNPC’s Spokesperson, Dr. Kennie Obateru, had noted that there was no subsidy, as such was not provided for in the budget.
However, he stated that the Corporation currently is faced with under-recovery which was still been carried as part of its operational cost.
His words: “We can only talk about undercover. There was no budgetary provision for a subsidy even when we know that Nigerians are buying products, that is; PMS is less than what it should be.
“But NNPC has been carrying that on behalf of Nigerians for now and it is part of our operational cost which is why we call it under-recovery. The account is done monthly and in arrears.”
However, with the Petroleum Industry Act (PIA) in place, the era of subsidy would soon be phased out as stated in the provisions of the act.
YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE
Viral Voice Note On WhatsApp Billing False
Claim: A viral WhatsApp voice note, purportedly made by the director and CEO of WhatsApp, claims users will have to start paying for WhatsApp services.
Verdict: The viral WhatsApp voice note claim is a hoax. The content is not new and has been circulated as a broadcast message several times in the past.
Viral Fake Post Claims Facebook, Instagram, WhatsApp Will Be Inaccessible For Seven Days
Claim: A Facebook post screenshot, purportedly from the verified handle of Mark Zuckerberg, claims Facebook, Instagram, WhatsApp and Messenger will be inaccessible again but this time for seven days starting from October 6, 2021.
Verdict: The alleged screenshot from Mark Zuckerberg being circulated is false.
Experts Say Mixture Of Snail Slime, Evaporated Milk Cannot Cure Stroke
CLAIM: A Facebook user claims water gotten from snails (snail slime) and peak milk can cure partial or full stroke.
VERDICT: The claim that water gotten from snails (snail slime) and peak milk can cure partial or full stroke is false.
FULL STORY: On July 26, 2020, a Facebook user, Prince Nnamdi Enyinnaya Emelelu Eluwa, in a post claimed that water gotten from snails (Snail slime) and peak milk can cure partial or full stroke. The post which is over a year old has recently been reshared by other Facebook users.
Marburg Virus: What You Need To Know About Disease Recently Detected In West Africa
On Monday, August 9, 2021, the World Health Organisation (WHO) confirmed the first case of Marburg virus in West Africa in Guinea. This development has sent shivers down the spines of West Africans who are still grappling with the effects of the coronavirus pandemic. But before this dreaded disease is greeted by rumours and misinformation, here is what you have to know about the virus.APC states to establish Health Emergency Trust Fund…
FACT CHECK: US Did Not Give Nigeria 48 Hours Ultimatum To Detain Abba Kyari
CLAIM: Several social media posts claim the United States of America (USA) gave Nigeria’s Federal Government 48 hours to detain suspended Deputy Police Commissioner, Abba Kyari, or face severe sanctions.
VERDICT: The claim is false and misleading. The US did not give Nigerian Federal Government 48 hours ultimatum to detain Abba Kyari.
The Federal Executive Council (FEC) on Monday approved the renewal of the Group Life Insurance…
The Nigerian Institute of Architects (NIA) on Monday disclosed that the use of professionals in…
The Federal Executive Council (FEC) on Monday approved a groundbreaking initiative aimed at reducing the…
The outbreak of cholera in the troubled Bokkos Local Government Area of Plateau State has…
Former Speaker of the 8th House of Representatives, Hon Yakubu Dogara, on Monday tasked the…
The Federal Government has begun moves to initiate sweeping reforms to revitalise Nigeria’s electricity distribution…
This website uses cookies.